Summary
A 44-year-old defense contractor was denied a security clearance under Guideline F (Financial Considerations) due to approximately $20,000 in unresolved taxes and delinquent debts. The Statement of Reasons detailed multiple outstanding financial obligations, including a $7,448 debt, a $3,751 credit card debt, a $980 debt, a $650 cell phone debt, a $408 credit card debt, and unresolved 2012 unpaid taxes.
While the applicant made some payments, such as resolving a $254 debt, making payments on a $1,112 debt, and paying $96 on a $481 retail debt in February 2016, several significant debts remained unresolved. A $2,275 judgment owed to a homeowner’s association was paid through garnishment and released in January 2016.
The denial was based on the applicant's history of being unable or unwilling to meet financial and tax obligations since 2010. Insufficient evidence was provided to demonstrate a consistent, good-faith effort to resolve all outstanding debts and taxes, leading to concerns about the applicant's reliability and judgment.
Why the Applicant Was Denied
- The applicant has a history of being unable or unwilling to meet financial and tax obligations since 2010.
- Insufficient evidence was provided to demonstrate a good-faith effort to resolve all debts and taxes.
- Outstanding debts and unresolved tax issues cast doubt on the applicant's reliability and judgment.
Conditions Referenced
- AG ¶ 19(a)raisedInability to Satisfy Debts
- AG ¶ 19(b)raisedUnwillingness to Satisfy Debts
- AG ¶ 19(c)raisedHistory of Not Meeting Financial Obligations
- AG ¶ 19(f)raisedFailure to File or Pay Taxes
- AG ¶ 20(a)rejectedBehavior Occurred Long Ago or InfrequentlyThe applicant's financial issues have persisted for over ten years.
- AG ¶ 20(b)rejectedConditions Largely Beyond ControlThe applicant did not demonstrate responsible actions to mitigate financial issues.
- AG ¶ 20(c)rejectedReceived Financial CounselingInsufficient evidence of participation in credit counseling.
- AG ¶ 20(d)rejectedGood-faith Effort to Repay DebtsLack of evidence showing a consistent effort to resolve all debts.
- AG ¶ 20(g)rejectedArrangements with Tax AuthorityNo proof of established repayment plans with tax authorities.
Key Rule Quoted
“Failure to live within one’s means, satisfy debts, and meet financial obligations may indicate poor self-control, lack of judgment, or unwillingness to abide by rules and regulations, all of which can raise questions about an individual’s reliability, trustworthiness, and ability to protect classified or sensitive information.”
Procedural Posture
- SOR issuedDec 30, 2015
- Answer filedFeb 4, 2017Applicant requested a decision on the written record.
- Hearing held—No hearing; decision made on the written record.
- Decision dateMar 13, 2018
Cite For
- Denial of Security Clearance Due to Unresolved Financial Obligations
- Impact of Financial Irresponsibility on Security Clearance Eligibility
- Criteria for Evaluating Financial Considerations Under Guideline F